Winners and losers under local tax cut

Across 60% of departments the average gain would be between €279 and €356 per family, according to calculations by the Observatoire Fran­çais des Con­jonctures Econ­o­miques (OFCE).

Targeted at middle earners – a couple with two children earning €42,670 to €66,530 – these families would benefit to the tune of between €410 to €520.

Mr Macron said he would halt the tax (it raises €10billion a year) for 80% of households, with only households with annual taxable revenue of more than €20,000 per fiscal share still paying.

At present the tax is high in poorer communes, low in well-off ones but it is not paid by 15.5% of households because of exemptions linked to age and low earnings. It also weighs less in the budget of the well-off, made worse as it has risen by 121% since 2000 while earnings have only risen 50%.

The OFCE study showed that the measure would profit regions with a higher number of middle-earning households as Mr Macron also promised any loss in local funding from the tax (which goes largely to communes) would be compensated fully.

Regions such as Pays-de-la-Loire, Centre and Bourgogne-Franche-Comté will have the highest number of beneficiaries but, depending on the way this compensation is worked, departments on the Mediterranean coast, Ile-de-France (but not Paris) where the tax per resident ratio is high will also see a considerable boost in spending power.

Regions like Limousin would see little benefit, despite having a high number of beneficiaries, as the tax is relatively low. Paris would also not be a winner due to low tax and many high-earners.

Dates for the changes and how they will be funded have not yet been set. Details of how second homes would be treated have also not yet been released.